New reports indicate that eating turnips helps people remain healthy. The news shifts the demand curve for turnips rightward. In response, new farms enter the turnip industry
During the period in which the new farms are entering, the price of a turnip ________ and the economic profit of each existing firm ________. A) rises; rises
B) rises; falls
C) falls; rises
D) falls; falls
D
Economics
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Protection of rivers in Idaho is a public good. If the marginal social cost of protecting rivers in Idaho exceeds the marginal social benefit of river protection, is there more than, less than,
or the efficient amount of river protection taking place?
Economics
When commercial banks extend loans, they are able to expand the supply of money in the United States because the U.S. has
a. a fiat supply of money. b. money that is backed by gold. c. a fractional reserve banking system. d. a system of federal deposit insurance.
Economics